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SEC Levies Various Charges Against ‘Teshuater’

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teshuater

Halt!

The SEC has recently laid charges on yet another fraudulent company, which robbed investors of funds through a variety of means.

The charges laid are against a group of entities, which include:

  • Teshua Business Group
  • Teshuater
  • Larry Leonard
  • Shuwana Leonard

It is believed that the couple, Larry and wife Shuwana, used his standing as a former Texas Pastor, to prey specifically on the African-American community.

Alkaline Water

Over the past few years, and most prominently during the 2017 ICO boom, we have seen various projects touting their unique nature.  While everything from maple syrup, to lost treasure, has been touted as value backing for coins, one of the more ridiculous is Alkaline Water.

It is this Alkaline Water, which much of the fraud to have taken place, was based upon.  The Leonards’ touted their Alkaline Water company as being the first of its kind to be ‘black owned’.  They then attempted to raise money by selling stock, selling non-existent ‘TeshuaCoins’ purportedly backed by their reserve of water, and under the guise of a yet-to-be established BTC mining outfit.

Even if this entire endeavour was legitimate in their efforts to raise money, the underlying product is basically snake oil; A product with no proven benefits was being peddled as an asset of value.

Big Money

Over the course of their journey, preying on unsuspecting investors, money was stolen through various means.

There were three main streams of income for the couple behind TeshuaCoin.

  • Capital generation through an ICO
    • $170,395.20 was raised out of a $20 million goal
  • Selling fake equity within Teshuater
    • Nearly $291,044.07 was raised through the issuance of fraudulent ‘stock certificates’
  • Investments for establishing a mining pool
    • $25,544.96 was stolen, with zero effort to establish said pool

Charges Laid

Naturally, as the fraud committed was not done so in a singular manner, there are various charges being laid against the couple and their group of companies.

These charges revolve around each of the aforementioned three ways that they decided to defraud investors.  Per their filing, SEC is seeking the following:

  1. Permanent injunctive relief
  2. Disgorgement of ill-gotten gains plus prejudgement interest thereon
  3. Civil penalties
  4. Equitable and ancillary relief to which the Court determines the Commission is entitled

Commentary

In their filing, the SEC summarizes the result of efforts made by Larry Leonard, Shuwana Leonard, and their companies, to defraud investors.

“Since at least 2017, Larry Leonard, individually and through Teshuater and TBG, along with his wife, Shuwana Leonard, targeted investors in the African-American community by promising oversized returns on various investments related to Teshuater, a business that bottled and distributed alkaline water. During the course of this scheme, Defendants raised nearly $500,000 from over 500 investors through materially false and misleading statements and omissions and other deceptive conduct.”

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

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